• Known material and labor needed $800,000.00
• Known overhead $120,000.00
• Profit markup 5%
• $800,000.00 material and labor
120,000.00 overhead
$920,000.00 cost of work needed
46,500.00 profit at 5%
$966,000.00
• $966,000.00 actual volume of work is needed to pay for annual overhead and to make a 5% profit.